Apart from AI and Interest Rate Policy – These Small and Mid-Caps Now Have Enormous Catch-Up Potential

Aside from AI and interest rate policy – These small and mid-caps now have enormous catch-up potential While AI and interest rates dominate the headlines, many exciting secondary stocks are moving into the background. Fund manager Josh Wein of the Hennessy Cornerstone Growth Fund currently sees the greatest opportunities there – and names three specific stocks.

9/29/2025, 8:00 PM
Eulerpool News Sep 29, 2025, 8:00 PM

Small caps gain ground – Tailwind from interest rate cuts

After years of stagnation, small and medium-sized US companies are making a comeback: The Russell 2000 recently rose by 12.27%, significantly stronger than the S&P 500 at 8.19%. Investors are increasingly turning away from overvalued tech giants. Additionally, small caps particularly benefit from the recent interest rate cut, as they are more credit-financed and sensitive to economic conditions.

Three Stocks with Potential – and Acquisition Speculation

Wine focuses on three titles that are currently 'flying under the radar':

  • Weis Markets – stabile Lebensmittelkette mit rund 200 Filialen und soliden Erträgen.
  • Root – Kfz-Versicherer, der Tarife über Smartphone-Fahrdaten personalisiert.
  • Compass – Immobilienplattform mit Chancen auf ein Comeback, sobald der Markt anzieht.

All three are favorably valued, high-growth, and potential takeover candidates.

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